The Philippines on Tuesday returned to the international capital markets for the first time in 2024 with its $2 billion dual-tranche 10-year and 25-year Fixed Rate Global Bonds .

The 25-year Global Bond will be issued under the Sustainable Finance Framework.

This transaction follows the Philippines' $1 billion 5.5-year Sukuk in December 2023, $3 billion triple-tranche bond offering in January 2023, $ 2 billion triple-tranche bond offering in October 2022, 70.1 billion yen four-tranche Samurai bond offering in April 2022 and $2.25 billion triple-tranche bond offering in March 2022.

The new 10-year tranche was priced at T+80 bps, reflecting a tightening of 40 bps from initial price guidance. The new 25-year Sustainability tranche was priced at 5.6 percent at par (T+99.8 bps), 45 bps tighter than the initial price guidance.

The Global Bonds are expected to be rated Baa2 by Moody’s, BBB+ by Standard & Poor’s, and BBB by Fitch. The transaction is expected to settle on 14th May 2024.

“We secured funding from the market at very cheap rates, which allowed us to save on borrowing costs. The 10-year spread has been the tightest among all our similar issuances since 2022, while the 25-year sustainability tranche achieved the second-best rate in the government's history. The tight pricing, especially compared to higher-rated peers, serves as an indication of the country’s exceptional performance beyond its current credit rating and makes a good case for a rating upgrade,” the Finance Secretary Ralph Recto said.

“Proceeds of this issuance will be directed towards the overall welfare of all Filipinos?more infrastructure projects, improved social services, a better healthcare system, and quality education for them,” he added.

National Treasurer Sharon Almanza remarked, “The strong reception and record tight pricing levels attained on this transaction reaffirms the Philippines position as a true watermark for quality emerging market credit stories.'' Bureau of Treasury